Brent Jumps 3.5% to $96.67 as U.S. Strikes in Iran Cloud Peace Deal
Updated
Updated · The New York Times · May 26
Brent Jumps 3.5% to $96.67 as U.S. Strikes in Iran Cloud Peace Deal
13 articles · Updated · The New York Times · May 26
Brent crude rose 3.5% to $96.67 a barrel on Tuesday, while WTI settled at $93.89, after Washington said it struck missile launch sites in Iran.
The move deepened doubts about a peace deal, with Iran saying any agreement must cover both its war with the United States and Israel and the Israel-Hezbollah fighting in Lebanon.
Gasoline has not yet followed crude higher: the U.S. average pump price slipped 1 cent to $4.50 a gallon, though it remains 51% above the level at the start of the war.
Markets showed a mixed read-through from the oil shock— the S&P 500 gained 0.6%, Europe’s Stoxx 600 fell 0.6%, and Asian indexes were split.
Oxford Economics said the oil spike makes higher inflation this year "inevitable" and raises the risk that price pressures persist into 2027 and beyond.
Is the historic disruption of the Strait of Hormuz accelerating the global shift away from fossil fuels?
As oil prices surge, will governments finally cut trillions in fossil fuel subsidies that mostly benefit the wealthy?
With U.S. munition stocks critically low, can its military sustain a prolonged conflict in the Persian Gulf?
U.S.-Iran Military Strikes and Strait of Hormuz Blockade Trigger Global Energy Crisis
Overview
On May 26, 2026, U.S. military strikes in southern Iran, described as self-defense by U.S. Central Command, killed four IRGC troops and triggered a sharp escalation in regional tensions. Tehran responded immediately, with the IRGC issuing stern warnings of retaliation and state media framing the strikes as obstructionism, potentially justifying an end to the current ceasefire. This heightened instability led to volatile market reactions, including a surge in oil prices, as fears grew over broader hostilities and the ongoing blockade of the Strait of Hormuz. The situation underscores the direct link between military actions, diplomatic risks, and global economic impacts.